A&L Remortgage

thewookie

Hi there,

Currently looking to remortgage with the A&L and have been offered a few decent fixed rate deals, my concern is though the follow on rate after the initial term. The follow on rate is going to be BOE rate + 3.74%.

This seems quite high especially as when the initial rate ends the BOE rate could be easily 4/5/6/7/8% or higher. What other follow on rates are being offered or should I not worry about this as I can remortgage at the end of the initial term.

Thanks for looking in

thewookie

Anyone got any input for me, looking further into this? Am I better waiting a while longer as I believe in the next 6 months A&L mortgages will be replaced with Santander mortgages? Is this likely to lead to a better or worse rate? New mortgage customers are being offered SVR of 4.24 compared to the A&L remortgage rate of BOE + 3.74%......

Any info gratefully received.

Thrugelmir

thewookie wrote: »

or should I not worry about this as I can remortgage at the end of the initial term.

That's the risk. Your circumstances might have changed. Lenders are tightening up.

The rate offered suggests that they would prefer you to move elsewhere. A&L is of course part of Santander now so they will be trying to move mortgages away (from A&L itself).

Thrugelmir

thewookie wrote: »

New mortgage customers are being offered SVR of 4.24 compared to the A&L remortgage rate of BOE + 3.74%......

Any info gratefully received.

Potentially that's better as SVR may not increase as fast as base rate.

With the A&L product you are always 3.74% above BOE base.